Advent takes victory lap, investing in Spectrum Equity’s Definitive Healthcare

  • Sell-side adviser: Evercore
  • Spectrum Equity made growth equity investment in 2015
  • Boston-based Definitive Healthcare founded by CEO Jason Krantz

Preempting the process for Spectrum Equity-backed Definitive Healthcare, Advent International is investing in the highly sought after healthcare-data provider, according to three sources.

The transaction is valued around $1.7 billion, two sources said, while a third characterized the deal as an equity recapitalization. Spectrum will remain an investor in Definitive Healthcare, which is led by founder and CEO Jason Krantz.

Following Buyouts report, Advent officially announced on June 5 that it invested in Definitive Healthcare, but it did not disclose financial terms .

“We look forward to working with Jason, Spectrum and the outstanding Definitive team to continue to invest in the product innovation and sales and marketing that has driven the company’s explosive growth,” Advent Managing Partner Bryan Taylor said in a statement.

Evercore provided financial advice to Boston’s Definitive Healthcare, five sources said.

Multiple sponsors were engaged in the process, with indications of interest submitted in late May, three of the sources said. Other parties in the mix submitted initial bids in the range of $1.4 billion, one source said.

Spectrum, with offices in Boston and San Francisco, in March 2015 provided a growth-equity investment in Definitive Healthcare.

Definitive Healthcare provides data and healthcare intelligence on hospitals, physicians and other healthcare providers. The company offers insights and comprehensive databases around patient trends, provider and network affiliations, among other things to support strategic decision making.

Definitive Healthcare serves a diverse customer base consisting of pharmaceutical companies, construction companies, medical device companies, financial services firms, technology vendors, staffing companies, consultants and care providers.

In recent healthcare bets of scale, Boston’s Advent in May agreed to acquire home-care provider AccentCare from Oak Hill Capital Partners.

The buyout firm was also in the running for Instamed, the healthcare payments company that ultimately went to JP Morgan in a transaction valued north of $550 million, Buyouts reported.

Advent typically takes majority equity interests in its portfolio companies, investing $50 million to $1 billion in companies with enterprise values of $50 million to $3.5 billion or higher.

Action Item: Managing Partner Bryan Taylor, who is based in Advent’s San Francisco office, can be reached at linkedin.com/in/bryan-taylor-a047b2172.

Note: This story was updated with additional information on June 26, 2019. —Ed.